Investing

New Investor: Need guidance

  • Last Updated:
  • May 10th, 2017 6:15 pm
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Deal Addict
Jan 27, 2015
1037 posts
465 upvotes
Edmonton, AB
chappanteekli wrote: Which exact index funds? Do you mind recommending a few? As I stated before, I would like to invest 100K. If you don't mind providing a breakdown, it'll be really helpful. I can then do my own research just to understand them better before investing.

Thank you so much everyone for all your help so far. It is truly appreciated.
Index funds track the market, for a very low fee.

Research TD e-series funds, which are the lowest cost indexed mutual funds in Canada.

Or buy XAW, VAB, VCN in some combination (depending upon your risk tolerance).

For reference, I have an equivalent of 50% in XAW, 25% in VCN and 25% in VAB based upon my 25+ year time horizon. I add to this position on a regular basis and I don't care what the market does.

My benchmark is 7% average return per year, which is a bit on the conservative side.

Good luck!
Jr. Member
Sep 6, 2014
154 posts
139 upvotes
Thank you so much, FinancialF!! This is really helpful. Gave me the perspective I was looking for. You guys are awesome!

Cheers,
Member
Aug 20, 2014
226 posts
89 upvotes
Toronto, ON
Hi 56dots, As a recent investor myself, I highly recommend you set up mock portfolios on google, or RBC direct investing. I built three or four mock portfolios and monitored them over a year. It was very revealing the type of information and education you manage to pick up during that time and how your portfolio shapes up. After dabbling with numerous complex spreadsheets and tracking stocks on a variety of website, it dawned upon me that that most sustainable, stable, and reliable way to balance my risk-return appetite was using a simple ETF portfolio of not more than 3 or 4 funds. It's an elegant and efficient solution, and takes away the stress of stock picking. I leave stocks for my mock portfolios just for entertainment. Good luck!
Sr. Member
Nov 13, 2007
881 posts
135 upvotes
Toronto
Don't speculate. Learn from your father's mistake. You're a beginner. It only takes one mistake for you to lose everything. It's just a matter of time.

Just stay with TD mutual funds until you accumulate enough, say 50K. Then, do "potato couch" (google it or see comment#4 for link) & become a lazy investor. Or if you're more adventurous, read "Derek Foster" book and do dividend investment.
Jr. Member
Sep 6, 2014
154 posts
139 upvotes
Great advice. Thank you very much!
sqara82 wrote: Hi 56dots, As a recent investor myself, I highly recommend you set up mock portfolios on google, or RBC direct investing. I built three or four mock portfolios and monitored them over a year. It was very revealing the type of information and education you manage to pick up during that time and how your portfolio shapes up. After dabbling with numerous complex spreadsheets and tracking stocks on a variety of website, it dawned upon me that that most sustainable, stable, and reliable way to balance my risk-return appetite was using a simple ETF portfolio of not more than 3 or 4 funds. It's an elegant and efficient solution, and takes away the stress of stock picking. I leave stocks for my mock portfolios just for entertainment. Good luck!
Deal Fanatic
Jul 23, 2007
5132 posts
4926 upvotes
Learn to embrace simplicity. Believe me, it's a lot harder to do than it sounds, over an investing lifetime.

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